Australian company LNG has awarded an EPC contract for its Magnolia project.

Magnolia LNG awards $4.35-billion EPC


PERTH, November 16, 2015 – Magnolia LNG, a subsidiary of Australian company Liquefied Natural Gas, awarded a $4.35-billion engineering, procurement and construction contract to a consortium led by US contractor KBR for its mid-scale LNG facility in Port of Lake Charles, Louisiana on the US Gulf Coast. The company estimates capital expenditure of $550 per LNG tonne once the project is completed, which is the lowest LNG capital cost in the US to date.


The contract works involve four LNG production trains with design capacity of 2 million tonnes per year each, two full-containment storage tanks with a capacity of 160,000 cubic metres each, marine and ship loading facilities and other support infrastructure.

The project will require future environmental approvals and licences, for which KBR and consortium partner SK E&C of South Korea will be responsible. The contract comes after Magnolia LNG received final environmental approval for the project from the US Federal Energy Regulatory Commission.